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Ukraine Forecasts $35B in Domestic Defense Production for 2025

Simon Osuji by Simon Osuji
March 1, 2025
in Military & Defense
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Ukraine has reported a significant rise in domestic defense manufacturing capacity, with production increasing from $1 billion in 2022 to an anticipated $35 billion this year.

“Ukrainian weapons are being forged in the most intense conflict since World War II. They are proving their effectiveness in the most challenging conditions,” stated Ukraine’s Minister of Strategic Industries, Herman Smetanin.

Recent developments include fiber-optic first-person view drones, interceptor drones, and unmanned ground vehicles.

Additionally, Ukraine has made advancements in electronic warfare systems, radio-controlled reconnaissance tools, and sophisticated communication technologies.

Locally Produced Equipment

Ukraine’s defense sector is rapidly evolving, fueled by initiatives that promote military technology development.

Kyiv is particularly investing in drone production, with over 500 companies involved across the country.

“During the full-scale war in Ukraine, the defense tech market developed literally from scratch. And it started with drones,” Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation, wrote in an op-ed for RBC-Ukraine.

The Brave1 platform, part of the Ukrainian defense technology cluster, plays a crucial role in assisting developers with funding through development grants.

In February, Ukraine launched a new initiative to expand the role of unmanned aerial systems on the battlefield, known as the “Drone Line.” 

Furthermore, Kyiv’s military has deployed fully operational robotic units within its frontline brigades to enhance combat effectiveness.

“Ukraine is increasing the production of these systems and deploying full-fledged robotic units as part of the combat brigades of the armed forces on the frontline,” stated Ukrainian Defense Minister Rustem Umerov.

These robotic units will support offensive and defensive operations, provide logistical assistance, and aid in the evacuation of wounded personnel.



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